From Deseret News archives:
UTOPIA project is too costly
UTOPIA is the name of a multi-city effort to wire every home and business along the Wasatch Front with fiber optic cable. The $540 million venture would be funded by a bond that, organizers hope, would be paid off by subscribers to Internet services that use the cable. But the bond would require each participating city to pledge a portion of its sales tax revenue for 20 straight years.
In South Jordan's case, that would mean setting aside $1.14 million. City officials correctly calculated they would have very little left with which to run their city. Other cities, such as Orem, have come to a different conclusion. They believe the fiber-optic cable would attract economic development and be a tremendous selling point for people looking to relocate.
Clearly, governments could do a lot of different things to attract economic development, but there is a limit to what taxpayers can bear.
Anyone who spent hundreds of dollars on an electronic calculator or a digital watch 30 years ago can tell you what time and engineering do to technology. They make it cheaper. The city of Murray laid a bit of fiber-optic cable years ago and is now looking to sell it at a loss, for that very reason.
Much of the fervor toward UTOPIA seems driven by a hatred for Qwest, Comcast and other providers who, for one reason or another, haven't lived up to some people's expectations. In a bizarre reversal of the usual conservative arguments heard in Utah, we are asked to believe that governments would be more responsive and accountable than the private sector.
But besides the obvious flaws in this reasoning, one big factor is hard to overlook. The private businesses pay taxes as they respond to consumer demands. Local governments won't pay taxes while laying these lines. All they will do is tie up a lot of sales tax revenue for 20 years.
Some cities, including Salt Lake City, have yet to decide whether to commit to UTOPIA. They should follow South Jordan's example and let their pocketbooks override their emotions.
Recent comments
This article is pretty old, and surprisingly things haven't changed...
Ryan | Feb. 3, 2009 at 11:11 p.m.
You mean a $54 installation fee and a $40 monthly rate for 50mbit...
Re: Mack | Aug. 20, 2008 at 4:22 p.m.
Mike be prepared for 1300 to 3500 dollar membership fee and 300...
mack | May 1, 2008 at 8:12 a.m.
- Smoking up nationally, down in Utah 5:36 p.m.
- 4A: Springville holds off Dixie 5:28 p.m.
- Lit flicks: Holiday movie offerings 5:17 p.m.
- 1940s thrillers are new to DVD 5:17 p.m.
- Keb' Mo' enjoys independence 5:16 p.m.
- On the screen 5:16 p.m.
- Weekend entertainment calendar 5:16 p.m.
- 'Bruno,' 'Star Trek' new to DVD 5:16 p.m.
- Coming soon to theater near you 5:16 p.m.
- Musician writes first note to last 5:16 p.m.
- House passes health care bill
328 - SLC council OKs gay rights policies
312 - TCU showdown has big implications
195 - Senators want food tax restored
158 - Cougars crush hapless Cowboys
155 - Utah Jazz fall apart against Kings
131 - Will state consider gay rights law?
130 - Editorial: Mormons and gay rights
123 - TCU 4th in AP poll; U. 16th, Y. 22nd
119 - Letters: Strange breed in Utah
117
Maybe someone out there can help me understand how raising the state...
RE: to bravabun | 5:40 p.m. Nov. 12, 2009 You're so wrong it's not even...
the solution to outrageous bank fees? don't use a debit card, and switch...
Dixie - nothing to be ashamed of. You represented Southern Utah well.
They didn't realize it was a national race? What kind of intelligence is...
"So the Church can discriminate against gays entering the temple based on...
The LDS church did the right thing here. It's nice to see a church with Jesus...
Oh please don't cry discrimination wolf buddy. I'm a Polynesian Police...
The House demonstrated their cowardice as well as their agenda to force a...
It was nice to see that Coach Sloan was considered as one of the great...

